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JPMorgan Launches 'JPM Coin,' First Cryptocurrency From a Major U.S. Bank

JPMorgan Chase & Co. has announced the creation of its own cryptocurrency, "JPM Coin," set to make up a small fraction of the trillions of dollars in value that it moves around the world daily through its wholesale payments service.

Through the blockchain-based cryptocurrency, the bank can transfer money around the world more quickly than it can through fiat, possibly paving the way for it to put more of its processes on blockchains — the cryptocurrency could transfer as quickly as blockchain-based smart contracts are closed.

"So anything that currently exists in the world, as that moves onto the blockchain, this would be the payment leg for that transaction," Umar Farooq, JPMorgan's head of blockchain projects, told CNBC. "The applications are frankly quite endless; anything where you have a distributed ledger which involves corporations or institutions can use this."

JPMorgan's trials with JPM Coin will be one of the first and most significant real-world tests of cryptocurrency in the industry.

Famously, the bank's CEO Jamie Dimon has disparaged bitcoin, the original cryptocurrency, as a "fraud," saying he would fire any employee trading it for being "stupid" in September 2017 (when BTC prices were around $5,000).

Of course, JPM Coin doesn't necessarily share many qualities with bitcoin.

"Each JPM Coin is redeemable for a single U.S. dollar, so its value shouldn't fluctuate, similar in concept to so-called stablecoins," CNBC reported. "Clients will be issued the coins after depositing dollars at the bank; after using the tokens for a payment or security purchase on the blockchain, the bank destroys the coins and gives clients back a commensurate number of dollars."

JPM Coin will initially run on top of the Quorum blockchain platform, a private version of Ethereum.

"The JPM Coin will be issued on Quorum Blockchain and subsequently extended to other platforms," per a FAQ posted online. "JPM Coin will be operable on all standard Blockchain networks."

Farooq said that JPMorgan will be utilizing its new cryptocurrency for international payments at large corporations, securities transactions and as a replacement for the dollars held through its treasury services.

A Former CFTC Chairman’s Plan for Federal Crypto Regulation

Timothy Massad, the former chairman of the Commodity Futures Trading Commission (CFTC), has outlined a case for better (read: stricter) federal crypto asset regulation in a substantial report for the Brookings Institute, “It’s Time to Strengthen the Regulation of Crypto-Assets.”

Square to Hire Full-Time Team of Open-Source Bitcoin, Crypto Contributors

Source: Twitter

Jack Dorsey, founder and CEO of social media giant Twitter and mobile payments company Square, announced that he is hiring a handful of full-time employees for the latter who will work on open-source contributions to the Bitcoin and cryptocurrency ecosystem. He added that the work done by this team, made up of three or four engineers and one designer, will be independent of Square's business objectives and all resulting work will be open and free.

Will #DeleteCoinbase Hurt Cryptocurrency Adoption?

There has been no shortage of news regarding trust issues in the cryptocurrency sphere. For example, the recent death of QuadrigaCX CEO Gerry Cotten revealed that he personally held the keys for the company’s reserves and they were lost, leaving platform users dependent on the Canadian justice system for a solution.

Huobi Introduces Coin Launch Platform

Source: Huobi

The Singapore-based cryptocurrency exchange Huobi has announce that "Huobi Prime," a coin launch platform, will go live on March 26. The service will allow professional and retail investors to purchase new cryptocurrencies before they are listed more broadly and potentially at lower costs. The announcement appears to compete with Binance's Launchpad service.